What happened
Shares of HubSpot (HUBS -0.01%), a cloud-based customer relationship management (CRM) platform company, were falling today after an analyst lowered his price target for the stock.
The tech stock fell by as much as 7.4% on Tuesday and was down by 5.9% as of 12:21 p.m. ET.
So what
Barclays analyst Ryan MacWilliams lowered HubSpot's price target to $325, down from his previous price target of $375, and kept an equal-weight rating on the stock.
Image source: Getty Images.
MacWilliams thinks that the stock's performance ahead of next week's earnings could be more influenced by investors' overall sentiment about the broader market rather than the company's results over the past quarter, according to TheFly.com.
MacWilliams' price target cut comes on the heels of Cowen analyst J. Derrick Wood lowering his price target for the stock last Friday to $415, down from $670.
Now what
Investors will get more insight into how HubSpot is doing when the company reports its second-quarter results on Aug. 4.
HubSpot's management set revenue guidance in the range of $409 million to $410 million -- up from sales of $310.8 million in the year-ago quarter. The company expects adjusted earnings per share in the range of $0.42 to $0.44, compared to $0.43 in the year-ago quarter.
With investors still trying to figure out whether or not inflation will continue to rise and whether an economic slowdown is on the horizon, HubSpot investors should expect more share price swings from the stock in the near term.
